May / June 2017 Vol 7 | No 3 $9.95
PUSATERI’S FINE FOODS PM # 42211029
AN EXTRAORDINARY EXPERIENCE Ida Pusateri & Frank Luchetta
A.S. May Powell celebrates100 years
Grocery Business May | June, 2017 Volume 7, Number 3
contents
Pusateri’s North Toronto store
DEPARTMENTS
48
6
Front End People & News
8 Canadian Grand Prix 2016
62 Launch It, List It
64 It Figures
New Product Award Finalists
11 Open Mike 13 Perspective
In praise of exceptional entrepreneurs
59 4
May | June 2017
New & now discoveries
Holistically healthy consumers
ON THE COVER
17 Pusateri’s Fine Foods An Extraordinary Experience
60 53
51 FEATURES
PHOTO GALLERY
15 Towards a National
48 Neighbourhood Market
30 Canadian Health Food
24 View From the Top
51 The Innovators
60 Grocery & Specialty
Food Policy
Benno Dorer, CEO, The Clorox Company
26 Retail Council of Canada: Diane J. Brisebois
Chez Latina
The Best of International Retail Design 2017
Association Food West
56 The Nielsen Company
An EDLP strategy for Canada
32 BrandSpark Canadian Shopper Study
47 2017 Best New Product Award Winners
35 A.S. May Powell’s
100th Anniversary Celebration
COVER PHOTO: JOSH RAINHARD
grocerybusiness.ca
Dave Cardy, president
5
Front End
Transitions Michael Vels
Mark Ayer has joined
Nadia Eccles, a 20-year
(left) will join
Crossmark Canada as
veteran of the CPG industry,
Empire
senior vice-president of
has joined the Renew Life
Company
customer development.
sales team at Clorox
Previously, Ayer was general
Canada as senior key
Limited mid-June as executive vicepresident and chief financial officer, and
manager, foodservice, Canada for the Kraft
Clinton Keay (right), formerly interim chief
Heinz Company.
account manager. Anthony Fuchs has joined
financial officer, is taking on the role of executive vice-president, technology, and
Three long-time employees of Metro Inc.’s
Food & Consumer Products
lead of the company’s Transformation Office.
Ontario division have announced their
of Canada as director, public
retirements: Domenic Calce, vice-president,
relations and communications.
Loblaw Companies Ltd.
Grocery & HBC Merchandising, Metro;
Previously, Fuchs was director,
altered the reporting structure
Richard Currie vice-president, operations,
national communications, at the Canadian
for its senior leadership team
Food Basics East; and Phil Terry vice-
Cancer Society.
following the retirement of
president, operations, Metro East.
Grant Froese (pictured), chief
Glenn Murphy, former CEO of
operating officer, in April. The following
Tim Brown has left his role as
Shoppers Drug Mart, Chapters
executives now report directly to Loblaw
president and CEO of Nestlé
Inc. and The Gap, has joined
president Sarah Davidson: Jocyanne
Waters North America to
lululemon athletica’s board of
Bourdeau, president, Discount; Garry
become president and chief
directors as co-chairman.
Senecal, president, Market; and Ian
operating officer of Chobani.
Gordon, senior vice-president, Loblaw
Damon Tanzola has joined
Brands. Richard Dickson, senior vice-
Horizon Distributors Ltd. has
Calgary Co-op as vice-
president, Central Store Operations and
promoted Shannen Lohnes to
president of facilities
Merchandising, now reports to Rob Wiebe,
the position of director of sales.
development and real estate.
executive vice-president, Supply Chain and
Lohnes joined the company in
Previously, Tanzola was
Enterprise Business Process Management.
2006 as sales manager.
director, real estate development, for Rexall.
Kim Rapagna has been appointed head,
Marc Ethier is the new
Devencore Realties
corporate responsibility, for Metro Inc.
national sales manager for
Brokerage has appointed
Rapagna’s experience includes leadership
Neal Brothers Foods. Ethier
Roman Konopud as senior
positions at Kraft Foods, TD Bank and
has previously worked in senior
consultant focused on office
Target Canada.
sales roles with HealthCraft
and industrial leasing for the
Products and Schleich GmbH.
CPG industry. Previously, Konopud held senior-level positions with Acosta Sales & Marketing, and E.D. Smith Foods.
6
May | June 2017
Front End ON LOCATION Sally Praskey, Grocery Business’s senior editor, in Helsinki, Finland, in front of the famous Temppeliaukio Church, also known as the “Rock Church,” with her copy of the January/February issue.
www.anuga.com
TASTE THE FUTURE ANUGA MEAT ANUGA BREAD & BAKERY ANUGA FINE FOOD ANUGA HOT BEVERAGES ANUGA DAIRY ANUGA ORGANIC ANUGA CHILLED & FRESH FOOD ANUGA FROZEN FOOD ANUGA DRINKS ANUGA CULINARY CONCEPTS
On the trade show floor at Drug Trading Showcase, 2017 (l-r): Dr. Sara Celik, Renew Life, with Anna Leroux and Nancy Carroll of The Clorox Company Canada.
In Memoriam
Frank Raymond Van de Water-Raymond Ltd. Frank Raymond passed away peacefully in Laval, Que., on March 19, 2017, at the age of 88. Born in Lachute, Que., Raymond founded Van de Water-Raymond Ltd., a sales, marketing and logistics company providing services to the food, pharmaceutical and retail industries. Raymond was an impassioned and visionary businessman whose remarkable accomplishments spanned his entire career. He remained active in the family-owned firm until 2015.
10 TRADE SHOWS IN ONE
YOUR NEXT DATE:
COLOGNE, OCT. 7-11, 2017 Buy admission tickets online now and save up to 42%: www.anuga.com/tickets
Koelnmesse Inc. 8600 West Bryn Mawr Avenue Suite 410 North Chicago, Illinois, 60631 Phone +1 773 326 9922 v.woods@koelnmessenafta.com
May | June 2017
grocerybusiness.ca anuga_2017_Anzeige_Grocery_Business_114x184mm_CA.indd 1
7 26.04.17 09:36
Congratulations! CANADIAN GRAND PRIX 2016
2016
COCA-COLA LIMITED Coca-Cola Meals Pack 1.25L
CUISINE MALLMOUSSE INC. Océania Solo Sauces & Mayonnaise
Natrel Lactose Free Dairy Product OKA Cheese Portion Pack
DIRECT PLUS FOOD GROUP McSweeney’s Pep’ N Cheddies
ARLA FOODS INC. Castello Decorated Cream Cheese Spread
DUMET AG Cielos Crunchy Olives
Arla Lactose Free Creamy Cheese Spread
EARTH’S OWN SoFresh
Castello Aged Havarti Cheese Castello Tickler Extra Mature Cheddar Cheese
FINICA FOOD SPECIALTIES Goat’s Milk Butter
BONDUELLE AMERICAS Veg•e Proteins Blend
FLOW WATER Flow Water
BRIDOR INC. Au Pain Doré Origine Pastries
FONTAINE SANTÉ Organic Sorbet
BURNBRAE FARMS LTD. Gourmet Nanny Hudson’s Homestyle Relish
FROBISHER INTERNATIONAL Ocean Mama Organic Sauté & Serve
Egg Creations! Whole Eggs CALBEE NORTH AMERICA Calbee – Whole Cuts Flavoured Potato Chips CAVENDISH FARMS Restaurant Style
8
May | June 2017
FROMAGERIE DOMAINE FEODAL Le petit Espresso Semi-soft Cheese FROMAGERIE L’ANCÊTRE INC. Ivanhoe Goat Cheddar GURU BEVERAGE INC. GURU – Organic Energy Water
HAPPY PLANET Happy Planet Soup
THE HEALTHY CRUNCH COMPANY, A DIVISION OF THE WHOLE LIVING KITCHEN INC. Healthy Crunch – Organic Kale Chips
Daily Squeeze LANTIC INC. Lantic-Rogers Sugar + Stevia Blend LES PLATS DU CHEF INC. Chicken Ramen Soup MAX + MARCUS GOURMET PRODUCTS INC. Max + Marcus Dijon Mustard ORGANIC MEADOW INC. Organic Single Serve Shelf Stable Milk
UNILEVER BCS CANADA, INC. Becel Margarine Breyers Gelato VIGNEAULT CHOCOLATIER LTÉE Organic Chocolate 80g packaging “resealable’’ WESTON BAKERIES LIMITED COUNTRY HARVEST Canadian Rustic Bean Bread
PARMALAT CANADA Black Diamond Natural Cheese Sticks
WRIGLEY CANADA Excel Naturally Sweetened Gum
President Spreadable Goat Cheese
NON-FOOD
Lactantia Butter PATIENCE FRUIT & CO BY FRUIT D’OR Organic Artisan Blend PILLER’S FINE FOODS Piller’s Salami Whips RIVIERA Riviera GMO-Free Set-Style Yogourt Riviera Collection Parfait
CARLTON CARDS LTD. Hyper Pop-ups Twirly Treasures GEBR, WEYERSBERG INC. – KING’S CROWN King’s Crown Ultimate Beard Box HALLMARK CANADA Star Wars Light Sound and Motion Bands INQPHARM NORTH AMERICA, LLC bmiSmart I-REMOVE Weight Loss
2016
AGROPUR DAIRY COOPERATIVE Natrel Lactose Free Butter
SODASTREAM CANADA SodaStream Fizzi Sparkling Water Maker
2016
Oasis Hydrafruit
CONAGRA BRANDS Healthy Choice SIMPLY Entrees
HAIN-CELESTIAL CANADA Sensible Portions Garden Veggie Chips
2016
A. LASSONDE INC. Oasis Active
2016
The Retail Council of Canada (RCC) has unveiled the finalists for the 24th annual Canadian Grand Prix New Product Awards. Winners will be announced May 31, 2017 at the Toronto Congress Centre as part of STORE 2017, Canada’s largest retail conference. rccgrandprix.ca
2016
FOOD
New2016 Product Awards Finalists 2016
KRUGER PRODUCTS SpongeTowels Ultra Strong
LONGO’S Longo’s Signature Chocolate Chip Cookie Vanilla Ice Cream Sandwiches
SUN PRODUCTS CANADA Sunlight 4 in 1 Powercore Pacs
METRO BRANDS, G.P. Irresistibles Chocolate Granola Crisp Blueberry Almond
PRIVATE LABEL FOOD
Smooth Peanut Butter Organics – Irresistibles 500 g.
CANADIAN TIRE CORPORATION FRANK + Picard’s Chip Nuts
REXALL Nosh & Co. Caramel Cheddar Popcorn SAVE-ON-FOODS Western Family Sauced Meatballs Western Family Wraps Western Family Chicken Wings Western Family Pulse Plus Whole Grain Loaf
Irresistibles Mini Gelato Bars
FRANK Cookies
Irresistibles Ultimate Beef & Bechamel Lasagna
FRANK Canadiana Mix Popcorn COSTCO WHOLESALE Kirkland Signature Pepperoni Pizza Hand Stretched Crust 4 Pack FEDERATED CO-OPERATIVES LIMITED Co-op Gold Buttercrunch Toffee Chocolate Co-op Gold PURE Organic Coconut Peanut Butter
Irresistibles Dark Chocolate Irresistibles Lobster Bites Irresistibles Candied Atlantic Salmon Irresistibles Belgian Chocolate Figurines Irresistibles Organics Whole Grain Quinoa Irresistibles Hand Stretched Frozen Pizza Irresistibles Vegetable Chips Irresistibles Bacon wrapped Shrimp
Co-op Gold Fruit Vinegar
SOBEYS INC. Sensations by Compliments Spirited Mickie BBQ Sauce Compliments Super Squeeze Real Fruit Purée and Vegetable Juice Snack Sensations by Compliments Naturally Smoked Bacon Sensations by Compliments Hand-Dee-Pies
CANADIAN TIRE CORPORATION FRANK + Full Circle Program (14 Products, 3 Refills) Dust Pan & Brush Set, Bubble Up Dish Brush FRANK + Full Circle Program (14 Products, 3 Refills) Kitchen Compost Collector & Dust Whisperer Microfiber PETSMART CANADA Only Natural Pet Food MONDOU Vetdiet Dog Biscuits
WALMART CANADA Our Finest Belgian Chocolate Collection
May | June 2017 Volume 7, Number 3 Executive Vice-President Content and Market Development Dan Bordun 416-817-5278 DanBordun@grocerybusiness.ca Contributing Editors Angela Kryhul, Sally Praskey Contributors Maureen Atkinson, Ted Bilyea, Diane J. Brisebois, Dave Lank, Michael Marinangeli, Bianca Piluso, Mary Scianna, John F.T. Scott
grocerybusiness.ca
PRIVATE LABEL NON-FOOD
Our Finest Uncooked Parmesan Smokie Bites
Co-op Gold PURE Sustainable Seafood Steelhead Trout
Co-Publisher and Content Director Kevin Smith 416-569-5005 KevinSmith@grocerybusiness.ca
14” Round Take’n Bake Pizza
Great Value Cooking Sauce
Co-op Gold Sorbetto
Co-Publisher and Executive Editor Karen James 416-561-4744 KarenJames@grocerybusiness.ca
Your Fresh Market Kansas City Style BBQ
Creative Agency Boomerang Art & Design Inc. boomart.net
Subscription changes & updates or general inquiries: info@grocerybusiness.ca
David Wilkes, Retail Council of Canada
Grocery Business Advisory Council 2017
Bill Ivany, Tree of Life Canada
Shaun McKenna, Acosta Sales & Marketing Thomas A. Barlow, Canadian Federation of Independent Grocers Perry Caicco (retired, CIBC) Jim Slomka, Clorox Canada
@grocerybusiness
grocerybusiness.ca
Publications Mail Agreement No. PM42211029 ISSN 1927-243X
Mary Dalimonte, Sobeys Cori Bonina, Stong’s Markets
Mailing Address Grocery Business Media 390 Queen’s Quay W., PO Box 40085 Toronto, ON M5V 3A6
Denis Gendron, United Grocers Inc. © Copyright 2017. All rights reserved. No part of this magazine may be reproduced without written permission of the publisher. GST Registration No. 83032 6807 RT0001
Mike Longo, Longo Brothers Fruit Markets Michael Marinangeli, MIDEB Consulting Inc. Darrell Jones, Overwaitea Food Group Cheryl Smith, Parmalat Canada
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May | June 2017
9
Front End
Foodland Ontario is marking two major milestones this year. Fortieth-anniversary celebrations kicked off at Longo’s Maple Leaf Square flagship store in Toronto (pictured, left). On hand for the festivities (l-r): Grant Crack, MPP; Alison Robertson, executive director, Ontario Fruit & Vegetable Growers’ Association; Rosanne Longo, Longo Brothers Fruit Market; Jeff Leal, Ontario Minister of Agriculture, Food and
Rural Affairs (OMAFRA); and Greg Meredith, Deputy Minister, OMAFRA. During Foodland Ontario’s 30th Annual Retailer Awards (above), 66 grocery retailers were recognized for innovative in-store promotional efforts. To see a list of all award winners, search “retail award winners” at ontario.ca/foodland/foodland-ontario.
Open Mike
Proud to be cheap! In good times and bad By Michael Marinangeli
All great retailers run a tight ship; it is part of their culture. Employees are trained from the outset to do things more cheaply, without compromising standards, service and quality. The grocery business is tough. When times are bad, you need to be nimble and poised to face adversity or a major disruptor to your business. Retailers that have a cost advantage over their competitors can turn that into a competitive advantage. The cost savings can be used either on promotion and pricing to drive sales and margin dollars, or they can augment the bottom line and return on investment. Those retailers that have successfully instilled tight cost controls in their daily routines stand a better chance of continued success when the competitive landscape changes dramatically and they have to react quickly and with flawless execution. Lowering prices is easy. Preserving the bottom line can be challenging when your organization’s overhead is high relative to the competition. Redundant functions, systems, reports and activities can creep in over the years and cripple your results if you have to react swiftly to adversity. A good example of a well-run and cost-efficient retail organization is Dollarama. At a time when most retailers are struggling to grow their sales and bottom line, Dollarama is bucking the trend, recently posting fourth-quarter results well beyond analysts’ expectations. Key highlights include: • Sales up 11.5%
• Net earnings up 24%
The only other retailer that continually exceeds the market metrics on key attributes is Costco. Both of these discounters are low-cost operators, and have several attributes in common: • They buy well and sell well
• Great price image and efficient assortment • Sales growth outpaces the market
• Business model is easy to understand and shop • Great seasonal merchandising
• Always a treasure hunt, with new-product introductions and limited-time availability • Cookie-cutter retail concept – easy and efficient to roll out new stores and train staff • Consistent retail execution Redundant and wasteful activities in your organization can be a serious drain on your results and resources. There are two methods to make your organization more cost-efficient: you can mandate it or you can make it part of your culture. When cost reductions are mandated, you often remove elements of the business that may be important to performance. Reducing your overhead to facilitate a preconceived number may not provide the positive and sustainable results you are looking for. But if you make lowering costs part of your culture, it makes the expression “being cheap” more than just a phrase. It will become part of every employee’s daily routine, and will ensure everyone is contributing to the bottom line.
• Revised expansion plans from 1,400 stores to 1,700 stores • Soon to accept credit cards, which should enhance average order size, sales and margin dollars
Michael Marinangeli is a principal at MIDEB Consulting Inc. and a retailing veteran with more than 40 years of experience. Contact: mjmarinangeli@gmail.com Michael is a founding member of the Grocery Business Advisory Board.
grocerybusiness.ca
May | June 2017
11
Superior taste, quality, safety and sustainability. You've got to hand it to us. A Flavour to Savour.
Stringent Safety Practices.
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A Leader in Sustainability.
The U.S. peanut industry’s technology and research in breeding, seeding, cultivation and harvesting combine to deliver the most flavourful, wholesome peanut. The U.S. peanut industry invests heavily in plant modernization and the latest equipment to ensure that all buyers receive the best possible product.
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To learn more, contact: American Peanut Council 1500 King Street, Suite 301, Alexandria, VA 22314 USA, +1-703-838-9500 info@peanutsusa.com For consumer information and recipes visit peanutbureau.ca
U.S. peanut processors follow stringent food safety practices to ensure that consistency, safety and quality are present in every aspect of USA peanut production. Peanuts are naturally sustainable. They replenish soil with the essential nitrogen depleted by other crops, resulting in less greenhouse emissions.
Perspective
In praise of
exceptional entrepreneurs
By John F.T. Scott
When I received the news that Ken Schley and John Briuolo had sold their interests in Quality Foods (QF) to Jim Pattison, I immediately thought of what these two exceptional entrepreneurs had brought to this industry. While many had a window on what led to their terrific ideas and strategic direction, few knew that the true origin was hashed out in often stormy partner meetings every Friday night. I remember a terrific video that played during the 25th anniversary celebrations, in which Ken was describing their methodical approach and John set him straight, saying: “we just flew by the seat of our pants.” It was a moment of mutual respect, as both had, unwittingly, just illustrated their amazing formula – well-conceived but often a scramble to execute. I had a sobering conversation with them a few years ago, when we discussed the potential for new entrants to the grocery market. Both agreed that the barriers to entry were now so significant as to almost preclude imaginative risk-takers from replicating their success. They were particularly concerned about two areas – access to capital and support from the consumer packaged-goods (CPG) sector. QF had always creatively addressed the former, while the latter had been, at one time, extremely helpful to them. Today, however, the sheer magnitude of capital requirements and the concentration of the CPG spend on the major distributors render both as almost insurmountable hurdles. If Ken and John had encountered those obstacles, I doubt we would be celebrating the exceptional QF of today. Without their imagination, there would have been no “Q” card; no “scan your own special”; no “hot on top – refrigerated below” prepared-foods display case (many equipment companies said it couldn’t be done); and no “A Step Above” – one of the best gift shops in Canada.
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The Qualicum Sand Castle Competition, QF Community Summer Fireworks, and many other events in each of their communities would not exist. These are just a few examples in an incredible legacy of accomplishments. Ken and John built their business based on respect for everyone, including their competitors. But most importantly, they worked hard to know and maintain goodwill with every customer. The stories of how individual consumers were treated are the stuff of legends. And when the original Qualicum store was destroyed by fire, it quickly became obvious that everyone in that community considered it their duty to rally around the partners and ensure that “their” Quality Foods and its partners would be OK. So now Ken and John move on to new ventures, taking their talents to other entrepreneurial opportunities. I won’t opine on the reason, but, like many, I have my suspicions. I just know that their willingness to try unique things made an incredible impact on an industry not known for its innovation. I’m confident that someone is going to write QF as a case study in entrepreneurship for an MBA program. Those students who do so will be going to school on the very best. As for our industry – we’re vastly diminished by their departure.
John F.T. Scott speaks, writes and consults on the food distribution sector. He is the author of “Perspectives on the Retail Food Industry,” an itinerant publication that explores various aspects of the industry.
May | June 2017
13
WE MAKE EVERYDAY LIFE BETTER, EVERY DAY.
Towards a National
Food Policy
By Ted Bilyea
Agriculture and Agri-Food Canada officials are preparing a National Food Policy (NFP) based on their mandate letter from Prime Minister Justin Trudeau. The precise wording of the mandate should have every retailer’s attention: “Develop a food policy that promotes healthy living and safe food by putting more healthy, high-quality food, produced by Canadian ranchers and farmers, on the tables of families across the country.” The prime minister is not alone in seeking a comprehensive policy that will guide the federal government as it makes decisions pertaining to the many regulations, programs and investments that touch food. Business, academia and the public have expressed the need for an NFP, and the Canadian Agri-Food Policy Institute, Conference Board of Canada, Food Secure Canada, the Canadian Federation of Agriculture, and others have worked towards one. Previous attempts at an NFP failed, as the political will was not there to bring competing interests to a unified vision. So why would today be any different? First of all, the Advisory Council on Economic Growth to the minister of finance has just identified agri-food as a key economic growth sector, with the vision that “Canada will become the trusted global leader in safe, nutritious and sustainable food for the 21st century.” Secondly, issues driving interest groups can be merged into a policy. For example:
• a new consumer food consciousness, with strong demand for authenticity, transparency and accountability;
• climate change and bio system deterioration are forcing us to look at food production through a sustainability lens;
A National Food Policy stemming from the development of a comprehensive roadmap toward a set of priorities for government action can benefit us all if we collectively leverage the abundant capabilities in the industry.
• the economic need for producers and processors to not only be competitive but to rise to their true potential; • the reality of a food-insecure population in a food-surplus country; • recognition that food choices play a key role in wellness;
grocerybusiness.ca
• the power of emerging science to transform the food system. There is growing recognition by disparate NFP advocates that there is benefit in working together to prioritize goals. So how would a National Food Policy affect grocery retailers? A walk through any of Canada’s better grocery retailers immediately signals they are immersed in the critical issues, including affordability, sustainability, health and, most of all, trust. However, there will be significant challenges to proactively manage an NFP; for instance: • How to alleviate food insecurity without simply defaulting to cheap food. • For our agri-food system to become the trusted global leader in safe, nutritious and sustainable food, there will have to be more Canadian agri-food on the shelf here at home. • Most importantly, retailers must continue to set the gold standard in trust. The transparency bar will continue to rise on where food comes from, what is in it and how it is produced.
Ted Bilyea is chair of the Canadian Agri-Food Policy Institute and former executive vice-president of Maple Leaf Foods Inc. He is the past recipient of the H.R. MacMillan Laureate in Agriculture from the University of Guelph, and holds a B.A. (Hons.) and an M.A. in International Relations from York University.
May | June 2017
15
AT A PREMIUM:
PUSATERI’S EXTRAORDINARY EXPERIENCE By Mary Scianna
With more than half a century of experience behind it and a visionary management team steering it into the future, Pusateri’s is bringing customers an elevated shopping experience like no other.
PHOTOS: JOSH RAINHARD
Pusateri’s origins can be traced back to a 300-sq.-ft. store located in Toronto’s Little Italy community, where a young Cosimo Pusateri worked alongside his Italian-speaking parents, negotiating on their behalf with English-speaking vendors. That was back in the 1960s and ’70s. By 1985, the now adult Cosimo had a vision that would guide Pusateri’s for the next 32 years: to build a food emporium that would house an array of top-quality foods from around the world under one roof. That vision is embodied today in Pusateri’s flagship store, situated in a prosperous North Toronto neighbourhood. Cosimo, who passed away in 1995, likely would have been proud of how his family has helped guide his vision. Today, his wife, Ida Pusateri, continues to run the business with her brother, Frank Luchetta, president and CEO. Her three children, Paolo, Sam and Rosanna, are also involved in the growing business, which now boasts more than 1,000 employees. “Beginning with Cosimo’s father, my children now represent the third generation,” says Ida. In addition to the flagship store in north Toronto, Pusateri’s operates three other stores: Yorkville Avenue, Bayview Village and Oakville Place, as well as two Saks Food Halls, at Sherway Gardens Mall and the Toronto Eaton Centre. And, according to Luchetta, there may be more opportunity to expand the Pusateri’s Saks Food Hall concept in British Columbia and Quebec. Luchetta doesn’t hesitate when asked what sets Pusateri’s apart: “It’s our focus on quality, freshness and service.” Many in the retail industry have taken notice of Pusateri’s success, including John Torella, senior advisor, marketing, for retail consultancy J.C. Williams & Associates. “I’ve been impressed with what they’ve done,” he says. “The Saks Food Halls are world class, and they would stack up with anything I’ve seen around the world.” He says their success is due to Pusateri’s ability to combine “rational and emotional elements. The rational element is the quality and uniqueness of the food that’s presented in a comfortable and attractive way, but it’s also a place to be seen. The Saks Food Hall on Queen Street is a Ida Pusateri and Frank Luchetta
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May | June 2017
happening place. It’s an exciting environment. People are involved, and staff are engaged with customers. This all comes together to create an experience, and that’s what Pusateri’s is selling.”
Qualitative difference Pusateri’s takes quality seriously. “Our buyers are at the (Ontario) Food Terminal at 3:00 or 3:30 a.m., six days a week, and we literally hand-pick every case of product that comes into our stores,” explains general manager John Mastroianni. “Because we don’t have warehousing like many of the larger stores and we sell on a daily basis, we have little inventory. It means the produce in our stores is the best that’s available in the city, and that’s the difference between the products in our store and more conventional products in other stores.” It’s not just about produce, though. Pusateri’s has carved a niche in offering some of the most innovative and unique fine foods from around the world. The key to its success is partnerships, says Luchetta. “We don’t pretend to be experts in things we don’t know. Our strength is our ability to get the best, freshest product available to us in the city, but when it comes to other areas, like seafood, sushi or baked goods, we partner with others.” He cites Pusateri’s partnership with All Seas, one of the largest fish importers in the country. “We realized years ago that we didn’t want to be in the fish business unless we had the ability to access the best and the freshest product, so we partnered with an importer who had access to the best product.”
Millennial appeal For Maria Proulx, a Millennial shopper who lives and works near the Saks Eaton Centre location, the store has a lot of neighbourhood buzz and offers outstanding convenience. “The store is very beautiful and really appeals to the area’s on-the-go professionals with ready-to-heat meals and delicious Roman-style pizzas,” she says. “My favourites are the vegetable butcher and the allergen-free dessert counter.”
Floral Boutique
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PUSATERI’S PHENOMENAL EXPANSION Selecting technology to keep pace and facilitate growth.
“We’re proud to have been Pusateri’s technology partner for over 15 years. They have been an inspirational family and incredible company to do business with.” - Paul Howell President, CEO & Founder Howell Data Systems
When it came to planning the stores’ retail systems and the chain-wide management solutions, the entire
Congratulations Pusateri’s On Your Grand Expansion!
Pusateri’s project management group, including owners and senior management, were involved. A detailed review of the required feature-functionality of the technology infrastructure was undertaken. Systems were selected to ensure customer service was optimized, store operations were enhanced and streamlined, and laying the technological foundation to facilitate future growth of the business was a priority. All aspects of Pusateri’s systems were reviewed including: front-end operations; cashier and supervisor duties and security levels; product purchasing and receiving; product transfers; sales data transfers and consolidation; accounting and ERP system integration; and virtualization of head office servers. “Every time I shop at the stores, I’m always amazed at the boutique shopping experience the Pusateri’s team has created,” says Paul Howell. “Knowing the amount of planning and work that the Pusateri’s team has put into creating such an outstanding shopping experience makes it all the more impressive. It’s very inspiring and a true testament to the Pusateri’s vision and standard of excellence.”
sales@howelldatasystems.com • 1-800-410-6871 ext 2152
FAST MOVERS
Exceptional environment Walk into any Pusateri’s store and you quickly discover it’s a shopping experience like no other. From the mesmerizing black and white tiled floor and the tantalizing displays of specialty fine foods and beverages, to the unique vegetable and fruit butcher and date bar, the Pusateri’s team has created an environment that keeps people coming back for more. “Our whole floor is licensed, so you can walk through our Saks Food Halls with a glass of champagne or a glass of wine and do your grocery shopping – a retail first,” says Luchetta. “We’re the first to have a sushi bar, the first to have fullblown home-meal-replacement options. We’ve been doing this for 30 years, and we are still able to create something new for our guests.” As alluring as the stores are, it’s the aspect of personal service that adds an element of the extraordinary to shopping at Pusateri’s, notes Torella. On any given day, you will see a Pusateri family member or Mastroianni engaging with customers in a way that elevates the shopping experience.
The meals-to-go category is a growing part of Pusateri’s appeal.
2016: What was served?
65,000 MINI MEATBALLS 38,000 SPAGHETTI AND MEATBALLS
22,000 LASAGNAS 188,000 CUPS OF SOUP 2,000 FT. OF PUSATERI’S SIGNATURE ROAST BEEF SANDWICH
120 WHEELS OF 3-YEAR-
OLD PARMIGIANO REGGIANO (75 LBS. EACH)
Proudly supplying Pusateri's
Award Winning Lindsay Bandaged Goat Cheddar
Our passion is food Proud Supplier To Pusateri’s Fine Foods
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May | June 2017
Accelerating growth Despite the company’s rapid growth – it re-opened its flagship store on Avenue Road 16 months after a devastating fire destroyed the store and corporate head office, and opened two Saks Food Halls and the Oakville Place store, all in 2016 – Pusateri’s is still at heart a family business. The kitchen on Avenue Road, which at one time had Italian grandmothers cooking familiar dishes, has evolved into a 15,000-sq.-ft. commissary that employs more than 80 people, including chefs from around the world who are busy creating authentic dishes. It is, as Luchetta describes, “homestyle cooking elevated, and the real start of the home-meal-replacement program, one of the fastest-growing areas of our business.” Over the years, Pusateri’s has learned how to build on its success, and the management team is moving forward with plans to position the business for the future. Mastroianni cites strategies to attract younger shoppers to the Pusateri’s experience. “We’ve implemented social-media platforms, and we’ve brought individuals on board to help us launch an e-commerce platform because we want to have all of our products available online,” he says. “We’re also looking at a loyalty program and other ideas that will bring people into our stores.” Pusateri’s will continue to evolve for years to come, but what won’t change is the inspiration that came from Cosimo Pusateri, says Ida Pusateri, who sees in her three children the passion that drove their father to build his food emporium. “My children were raised in the stores, and the food business has always been our life. They want to be involved, and it’s a true passion for them.”
We never anticipated that we’d be opening four stores in one year. Oakville Place Mall was planned to be our first new store, and then the news that Saks Fifth Avenue was coming to Canada broke, so I reached out to the owners of Saks about their interest in striking a partnership in their two Toronto locations. We’d seen how well food and fashion retail worked together in Europe, and we thought a food-hall concept would work in Canada. And then, with the Avenue Road fire in 2015, we had to re-build that store, which we re-opened within 16 months. —Frank Luchetta, president and CEO
IT’S A DATE! PUSATERI’S EXPANDS St. Clair Avenue
1963
Avenue Road
May 7, 1986
Yorkville Avenue
Nov. 13, 2003
Bayview Village
Oct. 19, 2010
Saks Sherway Mall
March 7, 2016
Oakville Place Mall
July 7, 2016
Saks Eaton Centre
Nov. 10, 2016
Avenue Road reopening
Nov. 18, 2016
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Q&A BENNO CEO, CHAIRMAN OF THE BOARD, THE CLOROX COMPANY
How can retailers and CPG companies adapt to take advantage of this market shift? There’s an opportunity to collaborate more in service of the consumer. The heart of the discussion isn’t about technology; it’s about the consumer – keeping pace with and responding to changing needs. Consumer insights continue to play a central role, whether consumers are shopping online or in-store. By sharing data, we can collaborate on platforms and systems that are more in sync, and deliver a rewarding and seamless shopping experience.
How will the emergence of the digitally engaged shopper impact CPG companies’ marketing efforts? This is a big growth opportunity, and we’re seeing payoffs for companies that invest early and smartly. Clorox is investing in e-commerce and digital marketing so that we win with the digital shopper. We’re tapping technology partnerships to help us deliver consumer experiences that extend beyond product usage. We recently launched geo-fencing with Snapchat that targeted consumers in a specific neighbourhood and invited them to an experiential event for the launch of Burt’s Bees lipsticks. We’re also using virtual reality to showcase the Brita brand’s clean-water initiatives for Canadian consumers.
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May | June 2017
At Clorox, we’re moving from doing digital to being digital. It impacts almost everything we do as a company, and we’re investing strongly behind digital in key areas of our strategy. About 45 per cent of our working media budget is dedicated to digital. And, our innovation work is integrating technology in our products and in e-commerce. For example, in the U.S., the Brita Infinity pitcher is Wi-Fi connected. It tracks your usage and automatically orders replacement filters through Amazon Dash Replenishment. Do you think e-commerce sales could potentially cannibalize bricks and mortar, and if so, how can companies keep margins in balance? Clorox is focused on profitable growth, and our e-commerce sales are largely incremental. We’ve doubled this business over the last three years, and in the next three years, we believe we can at least double it again. Still, there’s some cannibalization, which is why it’s important to prioritize a portfolio of SKUs that have high consumer demand and are, at minimum, margin neutral.
View From the Top
DORER The health and wellness consumer is a growing force – how has Clorox adapted, and how can retailers market their stores as wellness destinations?
Can you tell us more about Clorox’s integrated CSR initiatives and the sustainability trends you’re seeing in Canada?
Over the years, we’ve shaped our portfolio with brands that make a difference in consumers’ well-being. Building on our flagship product, Clorox bleach, our global portfolio has expanded even further in health and wellness. Our products address what goes into our bodies, enhancing digestive health and encouraging healthier food and beverage consumption; what we put on our skin through natural products; and what we use in our environment, with cleaning and disinfecting products in our home and healthcare facilities.
Our integrated corporate responsibility strategy supports our commitment to “good growth,” which we define as profitable, sustainable and achieved responsibly.
The health and wellness trend continues to grow across virtually all product segments. There’s an opportunity for retailers to strengthen loyalty among the growing number of consumers interested in this trend. Consumers want brand variety in-store and online. I’d encourage retailers to buck the traditional tendency to take things slow in allocating shelf space and brand depth. Leaning in with space on the physical or digital shelf ahead of product sales may feel risky, but the bigger risk is losing shopper conversion in such a fast-growing area. Health and wellness is also a focus area of our mergers and acquisitions strategy. Last year, we acquired Renew Life, a leading brand of probiotics in the natural channel. This was consistent with our interest in pursuing leading brands in fast-growing categories with attractive margins. Health and wellness is not only our past and present; it’s our future. Are there any specific health and wellness trends you see impacting the Canadian marketplace? Canada is often ahead of the curve in health and wellness. We’re seeing strong interest in digestive health and double-digit growth in natural personal care, which is why we’re investing strongly in our Burt’s Bees brand.
grocerybusiness.ca
Canada has always been at the forefront in sustainability. We’re taking a strong leadership role in waste diversion. We’ve introduced innovative, consumer-preferred solutions such as biodegradable compost bags. In addition, our facility in Orangeville, Ont., has been certified “zero waste-to-landfill” from repurposing at least 90 per cent of waste and sending the remaining 10 per cent or less to a waste-to-energy facility. Since its founding in 1913, Clorox has grown from a oneproduct business to a multinational company of leading brands and 8,000 employees. What’s never changed is our commitment to corporate responsibility. Not only do our employees and shareholders care about our business results; they care about how we achieve them.
BIO BRIEF Benno Dorer was named chief executive officer of The Clorox Company in 2014 and appointed chairman of the board in 2016. He currently serves on the board of directors of VF Corporation, executive committee of the board of the Grocery Manufacturers Association and Bay Area Council executive committee. Dorer holds a degree in economics from University of Freiburg in Germany and a graduate degree in business administration (Diplom-Kaufmann) from Saarland University, also in Germany. A German native, he is multilingual and has lived in Germany, Scandinavia and Belgium. May | June 2017
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Times are
a-changin’ By Diane J. Brisebois
I read with interest John F.T. Scott’s editorial in Grocery Business’ March/April 2017 issue regarding the need for a universal gathering point for the grocery industry in Canada. What piqued my attention was his assessment of the demise of the annual conference of the Canadian Council of Grocery Distributors (CCGD) and, in his opinion, the opportunities that are currently available for the industry to gather under one roof. While I’m sure the sentiments are sincere, the industry lacks fundamental conditions that would allow us to make the right decisions going forward and to dream again of a national grocery gathering point. For example, the demise of many of our industry’s events is partly a reflection of the changing nature and make-up of both the grocery retail and consumer products manufacturers’ markets in Canada. As a result, there are challenges to the ability of our industry associations to respond quickly to these changes in a cost-effective way.
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May | June 2017
No one doubts the success and value of the Night to Nurture Gala and the Golden Pencil reception; however, they have very specific desired outcomes that may not include being gathering points for everyone in our collective sectors. But there is light at the end of the tunnel. The three main associations representing our sectors – the Canadian Federation of Independent Grocers (CFIG), the Food and Consumer Products of Canada (FCPC) and Retail Council of Canada (RCC) – are working together to support each other’s activities, and most importantly, have begun discussing ways to bring the sector together in a meaningful and productive manner. One such event is the Canadian Grand Prix New Product Awards Gala, which is currently held in conjunction with RCC’s annual STORE conference in late May. In recent years, an attempt has been made to include an educational and networking component prior to the Gala itself, so that industry
Diane J. Brisebois is president and chief executive officer of Retail Council of Canada (RCC). The association’s membership comprises small, mid and large retailers in general merchandise, grocery and pharma, and accounts for approximately 78 per cent of all products sold in retail in Canada (excluding auto and gas).
colleagues can meet in one venue. In 2016, we took an important step in recognizing our peers by adding a Lifetime Achievement Award to the program. The associations, industry leaders and their boards must indeed collaborate, but must do so with fundamental parameters in place. If we decide, for example, that the current Grand Prix Gala and ancilliary networking activities are to be the gathering place, then let’s figure out a way to share in its planning and success. On May 31, we will be recognizing Anthony Longo, and the Longo family, at the Gala with the Canadian Grand Prix Lifetime Achievement Award. Let’s celebrate this great grocery retailing family’s accomplishments, and start the conversation.
Canada’s #1 Coffee Manufacturer* and will continue to drive growth in the coffee aisle!
Coffee Landscape Coffee is the most consumed hot beverage in Canada, and On Demand represents more than
COFFEE IS THE MOST CONSUMED HOT BEVERAGE IN CANADA
Coffee (traditional hot or cold coffee)
73% 60%
Hot tea
40% of total coffee sales. Recently, consumers have started trading up to larger count sizes –
39%
Hot chocolate
30ct growth is +90%, which better satisfies consumption habits.
33%
Iced tea Specialty coffee (espresso, cappuccino, latte)
*branded retail
ON DEMAND REPRESENTS OVER 40% OF TOTAL COFFEE SALES
12%
21%
Other beverage
Source: Ipsos Marketing, Single Serve Landscape, 2015.
47%
TL INSTANT COFFEE
26%
TL R&G COFFEE
41% TL ON DEMAND COFFEE
Source: Nielsen MarketTrack GB+DR+MM, Tl Coffee, L52 w/e Feb 2017
CONSUMERS ARE PURCHASING LARGER FORMATS OF SINGLE-SERVE COFFEE TO SATISFY THEIR WEEKLY CONSUMPTION HABITS
$ ABSOLUTE GROWTH
+91% -9
%
Total 12 Count
TOTAL ON DEMAND COFFEE
continues to grow in importance year over year
Millions
Total On Demand Coffee
600
+24.5%
500
+19.3% +0.5%
400
Total 30 Count
300 200 100 0
Source: Nielsen MarketTrack GB+DR+MM, TL K-Cup/Pods Sales $, 52 weeks ending April 01_2017
2013
2014
2015
2016
Source: Nielsen MarketTrack GB+DR+MM, Tl On Demand $ Sales, 2013-2016
CANADA’S
#
1
Coffee Manufacturer CONTINUES TO WIN IN SINGLE SERVE BY DELIVERING THE BRANDS CONSUMERS LOVE IN THE VARIETIES THEY WANT
MAXWELL HOUSE • #1 COFFEE Brand in Canada1 • 7 Million2 cups of MAXWELL HOUSE are consumed daily 1 2
Nielsen MarketTrack GB+DR+MM, Tl Coffee Manufacturers, $ Sales, L52 weeks Feb 25 pe. Nielsen MarketTrack GB+DR+MM, Tl On Demand, Lbs Sales, L52 weeks April 1 2017 pe. Estimate based on sales, share, usage, and demographic data.
NABOB • #2 Single Serve coffee brand in Canada Source: Nielsen MarketTrack GB+DR+MM, All Sales, L52 weeks April 1 2017.
THE ENVIRONMENTAL ADVANTAGE With three quick steps, consumers can separate their Kraft Heinz pods and recycle the outer cups where #6 plastic is accepted. Check with your local municipality for details.
TASSIMO IS ONE OF CANADA’S LEADING SINGLE-SERVE BREWING SYSTEMS. WITH 10 DIFFERENT BRANDS TO CHOOSE FROM AND A VAST ASSORTMENT OF BEVERAGE VARIETIES, TASSIMO IS PERFECT FOR ALL OCCASIONS.
DISCOVER THE RICH, FULL-BODIED FLAVOUR ENJOY THE SIGNATURE RICH, SMOOTH AND DELICIOUS TASTE OF McCAFE® COFFEE
© 2017 McDonald’s ® Use of these trademarks is licensed from/ Sont des marques de commerce utilisées en virtu d’une licence de McDonald’s Corporation.
CANADIAN HEALTH FOOD ASSOCIATION TRADE SHOW & CONFERENCE APRIL 6-9, 2017, VANCOUVER, B.C.
Bryce and Milo Wrigley, Alaska Flour Company Doug and Deanna Lovsin, Freson Bros.
Blake Katagiri, Mark Moore, Leah Floyd, Tommy McDonald and Jennifer Hryciw, Field Roast Grain Meat Company
Allison Fairfield, Bill Ivany, Sandi Hester, Tree of Life
Corrie Murray, Jan K. Overweel Limited
Howie Cooper and Stacey Kravitz, UNFI Canada
Allan Tillberg with new offerings from Naturally Homegrown Foods
Reza Bakhtiyari, Millennium Pacific Chris Neal, Jim Kavanagh, Peter Neal, Neal Brothers
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5,000 bars and counting. That’s how many bars Todd Kelly and his team from Kind Healthy Snacks Inc. handed out at the show!
Jessica and Tony Waters, TW Agencies Inc.
Ishkandar Ahmed, Choices Markets
Horizon’s Terri Newell, with Chris Powell, Tree of Life
Niloy Phukan, Ripple’s free-from dairy, soya, nut drink
Kathleen McCarron, Portland Pet Food Company Horizon’s sales team
Dave Pullar and Mike Cadrin with new Spokes from Left Field Foods
Dr. Sara Celik and Dave Iacobelli, Clorox’s Renew LIfe
Maria Arbulu, Kathy Boyce and Janet Kenefsky at the Western United States Agricultural Trade Association booth Mike Donald, Indigo Natural Products; Jeff Lahey, Skinny Pop; Tony Luongo, Indigo
Bob’s Red Mill’s Marching Band Mike Seely and Chef Pola at the Seely Mint booth
Trisha White and Suni Torres, Eclectic Natural Foods Inc. Robert Assaf, Kardish Health Food Centre; Alexa Monahan, Nature’s Fare Market; Judy Sharpe, CHFA Yohannes Petros, Hanes Hummus
Alan Maddox, Prosnack Natural Foods Inc.
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The Consumer
Grocery Tripping Highlights from BrandSpark’s 2017 Canadian Shopper Study Canadian shoppers are spending about the same on groceries as they did a year ago, but they’re now making shorter and more frequent trips to the store, according to the latest BrandSpark Canadian Shopper Study. This change in behaviour offers retailers additional opportunities to interact with customers, the study concludes. And, while convenience and proximity are key drivers both for short-trip and stock-up spends, customers still love a bargain, with promotions and deals continuing to have a high impact on purchase decisions.
MAIN REASONS FOR VISITING A STORE SHORTER TRIPS ARE ON THE RISE but total spend remains unchanged
60%
36% Product Availability and Price
Proximity
Stock-up spend
Short-trip spend
122
$ 2017 32
May | June 2017
2016
$52
DEPARTMENTS MOST VISITED BY SHOPPERS 79%
FRESH FRUITS AND VEGETABLES
66% 65%
MILK / DAIRY BREAD OR BAKERY
46%
FRESH MEAT
38% 37%
DRY GOODS / PASTA SNACKS
MOST SHOPPING TRIPS ARE MADE TO A SINGLE STORE
STOCKING THE AISLES
52 35% %
walk all the aisles
grocerybusiness.ca
stick to a shopping list and then checkout
74%
26%
( 4%)
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READERSHIP RESULTS FROM
I just want to say a quick thank-you for the fantastic article and coverage. I’ve already received calls from retailers who have seen the article and are interested in carrying the product line.
Making It
GREAT GHEE By Bonnie Schiedel I fell in love,” says Lee “When I made that first batch of ghee, so good and it’s good for Dare, founder of Lee’s Provisions. “It tastes is made by simmering you.” Ghee, also known as clarified butter, , which are skimmed off. The butter to separate out the milk proteins with a very high smoke point result is a concentrated form of butter even personal care. Toronto that can be used in baking, cooking and ghee in the top 10 of its 2017 food and beverage agency THP touted Flavour & Trend forecast.
s,” says Dare, who continues “That was a turning point for the busines the show aired in late 2016, to be the company’s sole employee. After ss about the brand and I got “there was a huge increase in awarene the taping, Dare added an inquiries from all over the country.” After y website, scaled down her e-commerce component to her compan moved production to a seven SKUs to the five most popular and -licensed dairy plant in 12-person manufacturing team at a federally of organic milk. Quebec, which has a larger ready supply
something small, something I “I was originally thinking this would be “But it just took off.” By would sell at farmers’ markets,” says Dare. and begun producing her lineup 2015, she had founded the company customers to skew younger, of ghees. And while Dare expected her who like it as a butter it’s actually health-conscious baby-boomers lactose and casein for the alternative that contains only traces of dairy-sensitive.
to stores in British Columbia, The company will expand distribution and is on track to enter the Quebec and Saskatchewan this year, changed the company name American market in two years. Dare also to reflect a planned broader from Lee’s Ghees to Lee’s Provisions, range of products.
via industry events such as The company started getting exposure shows. And then after Canadian Health Food Association trade neur Canada program that arranging a starter loan through a Futurpre knocking on doors and supports young entrepreneurs, Dare started , including Whole Foods making cold calls to build her first 50 retailers . and Foodland locations in southern Ontario production and distribution, When it came to finding funds to expand Dragon’s Den in April 2016. Dare decided to make her pitch on CBC’s (who debated her company’s She piqued the interest of several judges popcorn), and she ultimately merits while munching on ghee-topped partnered with investor Joe Mimran.
It reflects the company’s And how about that elephant on the logo? its profits to a non-governmental commitment to donate 10 per cent of works to secure elephant organization called Elephant Family that parts of Asia, helping to wildlife corridors across India and other elephant population. “It’s a way protect the world’s endangered Asian originated,” says Dare. to give back to the country where ghee
es “We put Lee’s Provisions on our shelv is such a because the organic flavoured ghee well with our unique product. It does extremely flavours.” of p lineu the customers because of —Tara Longo, owner, The Healthy Butche
r, Toronto
March | April 2017 grocerybusiness.ca
Canada’s premier grocery magazine: Kevin Smith: kevinsmith@grocerybusiness.ca Dan Bordun: danbordun@grocerybusiness.ca Karen James: karenjames@grocerybusiness.ca
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ee Dare, president, L Lee’s Provisions
Celebrating 100 Years
Congratulations 100 Anniversary th
O N YO U R
T H A N K YO U F O R A G R E AT PA R T N E R S H I P ! FROM
1957: Company founder Albert May and his son, Jack May (seated), strategizing for the future with their team.
A.S. May Powell
Celebrating a Century of Service When it comes to longevity, very few companies can match A.S. May Powell’s (ASMP) unique place in Canada’s corporate landscape. This year marks a milestone – A.S. May Powell is celebrating a remarkable 100 years in business. This landmark year is a time to not only reflect on past successes, but to set the stage for new growth. And while the future offers plenty of opportunity, it’s been strong leadership, exceptional account-management talent and the company’s ability to adapt to changing marketplace realities that has kept ASMP relevant since 1917 when founder Albert May launched the business. By Sally Praskey
PHOTOS: BRIAN SUMMERS
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“I think I was very lucky that Mr. (Jack) May hired me. I ended up coming into an organization where a lot of people showed me the way. And I’m lucky to still be doing what I’m doing.” — Dave Cardy, President and Owner
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May | June 2017
A.S. May’s centennial meets Canada’s sesquicentennial
Leading by example Dave Cardy, who joined the company in 1979 and has owned it outright since 1998, is widely respected as a leader who hires dedicated, knowledgeable staff, and then provides them with the tools and support required to achieve their best work. Modest, with a keen sense of humour, Cardy says simply that he’s been “lucky” to have been surrounded by a talented team throughout his career. “There are a lot of good people at ASMP, and they are very skilled at what they do, so we are fortunate.” Perhaps the talent for hiring great staff was inherited from Jack May, the founder’s son, for whom Cardy worked until 1992. Cardy says that “Mr. May,” as he always refers to him, urged his team to “be humble, but be proud of what you do.” Cardy began his A.S. May career in sales, becoming president in 1991. He recalls that Jack joined the business at about 27 years of age when company founder and Jack’s dad, Albert, issued him an ultimatum to choose between working at A.S. May or playing hockey – at the time, Jack, an accomplished ex-Toronto Marlie, was at the New York Rangers tryout camp. Jack chose A.S. May, and remained at its helm until he passed away at age 80. Cardy describes him as “a first-class guy who assembled top-notch teams.” He says that Jack was well respected by the trade and was “a great guy to work for.”
Marking the milestones 1917 n
Albert May starts his food brokerage business. Delmonte Dried Fruit becomes one of his first clients, a partnership that endured until a buyout 50 years later.
• The National Hockey League is formed, consisting of four Canadian teams.
1934 n
Canadian Fishing Company becomes an A.S. May client. Eighty-three years later, the company, now owned by Ocean Brands, remains a loyal client with its Gold Seal and Ocean Brands labels.
• The Bank of Canada is formed.
1998 n
A.S. May [Dave Cardy] and C.B. Powell [Tim Powell] enter into a partnership, sealed with a handshake. Nineteen years later, they are still working together to successfully build brands.
• Canada is elected to a seat on the United Nations Security Council.
2002 n
A.S. May goes live with the Mantis Retail system, a new paperless retail technology system that has become a valuable tool in collecting, organizing and sharing information.
• Canada wins gold for men’s and women’s hockey at the Olympics in Salt Lake City, Utah.
2017 n
On March 1, 2017, A.S. May begins its 100th birthday celebrations.
• Canada celebrates 150 years. “We are grateful to our clients and employees who have, over the years, brought us to such an historic business milestone which coincides with Canada’s 150th birthday celebration.” —Dave Cardy
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Congratulations on your 100 years of doing business
OCEAN FRIENDLY TUNA
Ocean’s offers the widest range of Ocean friendly tuna in Canada. We are committed to responsibly sourcing our products from fisheries within regions which can maintain sustainable numbers of tuna, and protect marine reserves.
Feel Good Fuel
oceanbrands.com
Congratulations to A.S. May Powell for their 100th Anniversary!
The A.S. May Powell head office team: (back row, l-r) Andrew Oziewicz, Angie Foley, Teresa Alves, Maureen Hopkins, Brian Smyth, Janet Dean, Eileen MacKinnon, Michael Ward; (seated, l-r) Karen Ballard, Dave Cardy, Dave Hibbard, Nancy Delaney
Longevity = continuity One of the most notable aspects of A.S. May Powell’s offering is the remarkable length of service of many of its employees. Account and territory manager Brian Smyth holds the record for tenure, with 47 years of service. Smyth, who began on the order desk in the 1970s, says the company holds a strong belief that people are its greatest asset. “Unlike large corporations, which are highly structured, our company allows individuals more scope to make decisions and manage their everyday business. They throw the ball to you, and you run with it.” ASMP inspires team loyalty, says Karen Ballard, retail manager, who has more than 20 years of service. “That’s because the employees trust the company will take care of them, and in turn, the employees take care of the company.” To work at ASMP is to work in an environment of individual
grocerybusiness.ca
self-management and team support, says Ballard. “Under the leadership of Dave Cardy, ASMP has created an environment where the objectives of our brand clients and retail customers are met, while at the same time, the needs of the employees are top of mind.” “Because we work in such a positive atmosphere, we strive to do our best for the company, adds Eileen MacKinnon, accounting and logistics manager, and a 33-year company veteran. “I think anyone would be lucky to be employed at A.S. May.” MacKinnon went on to add that, “I believe that we are successful because we want our clients to feel they are part of our family and that we are proud to work with them to successfully grow their business.”
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Congratulations
on 100 years of success!
Congratulations A.S. May Powell on your 100th anniversary Since
S A L E S & M A RKETI N G I N C.
1908
Tops in technology ASMP staked its claim as a technology leader early, with the implementation of the Mantis system, a real-time field data collection and reporting system developed by Metaworks for the CPG industry. Mantis collects information in the field about clients’ products, such as whether they are in stock, whether the tags are up, and how promotions are being carried out. Based on this information, the system can generate customized reports to meet clients’ needs. It also allows territory managers to take photos in the field to record current displays and provide proof of completed work. ASMP develops the questions to which the field reps respond, “by store, on each and every call,” explains Barbara Donald, senior analytics manager. Based on the collected data, Donald runs a series of reports that she shares with account managers and clients. As a project manager, she devises additional ways in which Mantis can be used, and collaborates with Metaworks to continue to evolve the system.
Gold Seal of approval A.S. May has represented Ocean Brands’ Gold Seal brand of canned seafood for a whopping 83 years, and counting. Ocean Brands purchased the Gold Seal brand four years ago, explains president Aidan Hughes. “At that point, we evaluated different brokers – the Ocean Brands versus the Gold Seal brokers, and we decided that A.S. May was the one for us.” He says Ocean Brands chose A.S. May for both its history and its responsiveness to the company’s needs. “They really provide us with good service, and there’s a lot of experience there, going back many years. We felt that they were a better fit than any of the other brokers we were considering. “And we’ve always felt that we’ve had a special relationship, because it goes back so long. A lot of the success that the Gold Seal brand has had in Ontario over those many years is due to the cooperation and collaboration with A.S. May.”
“We are the only broker that uses this system in Canada,” says Donald.
“Right-sized” Every successful business has its unique competitive advantages, and with 25 employees, A.S. May Powell is designed to give each client personal attention while also offering state-of-the-art technology and top-notch service. In fact, even president and owner Dave Cardy still works directly with some of the large retailers. “The customers are excellent to work with – they share information on how their businesses work, and they provide counsel,” he says. “If they trust you, they’ll share with you.”
“One of reasons A.S. May Powell has been successful for 100 years is that it is the right size,” says Dave Hibbard, vice-president, business development, and a 32-year veteran of the company who began his career on the order desk after graduating with a marketing degree. “We’re not the largest broker and we’re not the smallest. And the benefit of that is that we have the capability of offering an array of services, while allowing us to stay focused and in touch with our clients’ and customers’ needs.” Dave Hibbard
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Focus on the future No company survives for a century – and counting – without adapting to change. And while ASMP continues to follow the recipe that has made it successful for 100 years, the company is constantly innovating to ensure its future longevity.
A.S. May and C.B. Powell: profiting from partnership Nearly 20 years ago, A.S. May joined forces with 72-year-old food marketer C.B. Powell Ltd. to form A.S. May Powell. Whereas A.S. May is a pure broker, C.B. Powell is a full-service buy–sell distributor, purchasing products from other countries that A.S. May then represents along with its own Canadian clients. The partnership offers clients the best of both worlds. Although Cliff Powell founded C.B. Powell in 1945 as a pure food broker, the company evolved into a full-service business as its American clients required additional services. “And so over the years, we developed a different strategy,” explains Tim Powell, the second-generation chairman and CEO of C.B. Powell. “But selling is still the main focus, and so A.S. May is the most important service that we offer. And because C.B. Powell provides this other, fuller range of services, we don’t compete with one another; we complement each other.” Depending on whether a potential client is looking for a company to represent it in the market or for additional services, A.S. May and C.B. Powell refer business to one another. “We have become sort of a feeder for A.S. May, and vice-versa,” says Powell. Both companies also had industrial selling divisions, providing ingredients to Canadian food manufacturers. By joining forces, the partners were able to bulk up this division, now called Powell May International. A.S. May and C.B. Powell share not only office space but – most importantly – values. “We both believe in having a small stable of long-term principals, and long-service employees,” says Powell. “Our goal is to maximize the sales for our principals and treat our staff well.”
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This strategy includes branching into increasingly popular consumer product categories. “The retail landscape is changing, so as the population changes, there is definitely an interest in ethnic products – we have a few in the stable right now,” says Cardy. “And then there is the whole area of wellness. We’re getting into a lot of those types of products.” Nancy Delaney, newly promoted director of sales and a 17-year veteran of the company, intends to focus much of her efforts in these areas. “We are getting into more innovative brands, where it’s about healthy and organic products,” she says. “That’s the future of the company – looking at more alternative products and growing that segment of the business.” The company also intends to increase its presence in emerging categories, says Hibbard. While ASMP has been focused primarily on the centre of the store, he says there are opportunities in meat and deli, as well as home-meal replacement. In addition, “we need to look at the brands we already have and better understand what the ethnic opportunities are,” notes Hibbard. But any growth will be selective; ASMP won’t take on a client for the sake of more business if it doesn’t fit with the company’s culture. The company is looking to balance the experience of its longtenured employees with an infusion of young talent. “I feel confident the company will do well going forward because we are building bench strength,” says Smyth. Ballard notes that ASMP is working to form alliances with likeminded medium-size independent brokers across the country. The goal is to provide expertise in each market, while maintaining a highly professional and service-oriented relationship with clients and retailers. Clearly, ASMP has no intention of resting on its 100-year-old laurels; it will continue to evolve with the times. However, what will not change are the values upon which the company was founded, and the culture that Dave Cardy has so successfully nurtured among his staff and clients. It is upon this foundation that A.S. May will build for the future – with confidence, enthusiasm, and the wisdom borne of a century of experience.
Best New Product Awards
Congratulations
to the 2017 BEST NEW PRODUCT AWARD winners! Now in its 14th year, the BrandSpark Canadian Shopper Study provides comprehensive insights about Canadians’ habits when they shop for everyday consumer packaged goods. More than 20,000 Canadians participated in the independent 2017 research study, and the results are used to determine the winners of the Best New Product Awards (BNPAs).
2017 BEST NEW PRODUCT WINNERS FOOD & BEVERAGE CATEGORIES »» BAKING: Duncan Hines Salted Caramel Brownie Mix
»» SPREAD/DIP: Sabra Hummus Spreads
»» YOGOURT: Liberté Caramelized Pineapple & Pecans
»» BREAD/WRAPS: Country Harvest Canadian Rustic Bean
HEALTH & BEAUTY CATEGORIES
»» BUTTER/MARGARINE: Becel Original with Simple Ingredients
»» BODY MOISTURIZER/LOTION: Jergens Moisturizer for Wet Skin
»» CHEESE: Black Diamond Natural Cheese Sticks – Marble »» CHOCOLATE BAR: Brookside Dark Chocolate Tablet Bars »» CHOCOLATE SNACK: Mars Bites
»» COFFEE: NESCAFÉ Sweet & Creamy
»» CRACKERS: Twistos Garden Dill and Cream Cheese Baked Snack Crackers »» DRINK CARBONATION SYSTEM: SodaStream Power Sparkling Water Maker »» FROZEN DESSERT: Chapman’s Yukon Moose Sandwich »» FROZEN ENTRÉE: High Liner Marinated Portions »» FROZEN PIZZA: Dr. Oetker Giuseppe Rising Crust Canadian Pizza »» LIMITED EDITION SEASONAL CHOCOLATE: Hershey’s KISSES Deluxe
»» CONDITIONER: Pantene Moisture Renewal 3 Minute Miracle Deep Conditioner »» EYE LINER & EYEBROW PENCILS: L’Oréal Paris Brow Stylist Definer Pencil »» FACIAL CLEANSER: Garnier Skin Active Micellar Water »» FACIAL MOISTURIZER WITH SPF: Aveeno Absolutely Ageless Daily Moisturizer SPF 30 »» FACIAL SKINCARE: L’Oréal Paris Pure Clay Mask »» FOUNDATION: L’Oréal Paris Infallible Pro-Glow Foundation »» HAIR COLOUR: Schwarzkopf Keratin Colour Intense »» HAIR REMOVAL: Veet Silk & Fresh Technology Hair Removal Cream »» HAIRSPRAY: Pantene Airspray Hairspray
»» MEAT SNACK: Piller’s Salami Whips
»» LIP COLOUR: Burt’s Bees Lipstick
»» PASTA: Catelli SuperGreens Pasta
»» MEN’S ANTIPERSPIRANT: Old Spice Hardest Working Collection Odor Blocker Antiperspirant
»» PACKAGED MEAT: Maple Leaf Canadian Craft
»» PROTEIN BAR: Genuine Health Fermented Vegan Proteins + Bars – Lemon Coconut and Dark Chocolate Almond »» SNACK BAR: Special K Nourish Cranberries & Almonds Bar
grocerybusiness.ca
»» MASCARA/PRIMER: L’Oréal Paris Voluminous Primer
»» MEN’S HAIR STYLING: L’Oréal Paris Men Expert Sculpting Paste »» MEN’S RAZOR: Gillette Fusion ProShield Razor
»» SHAMPOO: L’Oréal Paris Extraordinary Clay Shampoo »» TOOTHBRUSH (OVER $9): Arm & Hammer Truly Radiant Clean & Fresh Spinbrush »» TOOTHPASTE: Colgate Max Fresh KnockOut »» VITAMIN/SUPPLEMENT: Jamieson Omega’s with No Fishy Aftertaste »» WOMEN’S INCONTINENCE: Depend Night Defense Underwear for Women HOUSEHOLD CARE CATEGORIES »» AIR CARE: Renuzit Sensitive Scents – Pure Ocean Breeze »» BATHROOM CLEANING: Vim Power & Shine Bathroom Spray »» DISH SOAP: Palmolive Fusion Clean Baking Soda & Lime »» HOUSEHOLD PAPER: SpongeTowels Ultra Strong Minis »» LAUNDRY STAIN REMOVER: OxiClean MaxForce Laundry Foam Pre-treater »» LIQUID LAUNDRY DETERGENT: Purex Oxi Plus »» SINGLE DOSE LAUNDRY DETERGENT: Tide PODS Plus Febreze Odor Defense KIDS & BABY CATEGORIES »» BABY & TODDLER CARE: Aveeno Baby Eczema Care Nighttime Balm »» CAT LITTER: Arm & Hammer Clump & Seal LightWeight Cat Litter »» DOG FOOD/TREAT: Milk-Bone Good Morning Daily Vitamin Treats
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Neighbourhood Market
Chez Latina More than a local grocer, Chez Latina is a beloved icon of Montreal’s Mile End neighbourhood.
By Dave Lank
Proprietors Bernard Legendre and Josée Chrétien
Montreal is a city of neighbourhoods, so it’s no surprise that each area is anchored by a selection of its own unique boutiques and grocery stores. For the local residents, these stores are more than just places to shop or purchase food; they have become neighbourhood institutions. And this is certainly the case with Chez Latina, a purveyor of fine and convenient foods in Montreal’s Mile End district.
Grocer for a gentrifying neighbourhood Chez Latina is located on Rue St-Viateur in the heart of the Mile End, about six blocks north of Mont-Royal. The street is legendary for its rich immigrant history, its namesake bagel shop, and for people watching. With its mix of artists, musicians, techies, and young families, Mile End is considered one of the planet’s hippest neighbourhoods. Although diverse in background, one thing the residents share is their regular trips to local grocer Chez Latina.
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Bernard Legendre and Josée Chrétien own and operate Chez Latina. Chrétien purchased the longtime family-run business from the previous owners in 2000 and quickly adapted the store’s concept to reflect the needs of the rapidly gentrifying neighbourhood. They had a perfect template upon which to build. For a time, the couple had lived in New York City and, says Legendre, “We very much enjoyed shopping at certain independent grocery stores there, and took inspiration from them.”
A foodie’s paradise Like the Mile End neighbourhood itself, Chez Latina is unique and somewhat of a melting pot of offerings; part urban market, local butcher, grocery store and caterer, the shop is designed to meet the daily food needs of a diverse customer base. In addition to a variety of unique grocery brands, Chez Latina’s foodie customers can wander through a 3,500-sq.-ft. space featuring: • racks of hard-to-find private-label wines; • gift baskets filled with organic produce; • house-made soups and pasta sauces, beautifully displayed; • locally crafted products, such as artisanal roasted coffees made from faro; • unique imported chocolate and teas from Europe and beyond.
Heading downtown In 2014, building on the success and loyalty Chez Latina enjoys in Mile End, Chrétien and Legendre opened a second store in a downtown neighbourhood. “Having lived in the downtown area before, we knew there weren’t too many grocery offerings there,” explains Legendre on the decision to expand. The clientele at Chez Latina’s second store is a different mix than the customers at the original store. Throughout the day, you will see students from nearby Concordia University, tourists (the Montréal Museum of Fine Arts is nearby), business people, and local residents shopping and socializing in the store.
At half the size of the flagship location, the new store lacks the space for its own butcher and other service stations. Instead, it carries convenient, ready-to-go meals, desserts and charcuterie prepared and brought in from the Mile End location. To keep up with demand, Chez Latina uses a central commissary to make its fast-growing line of jarred sauces and frozen gourmet meals. “Some people will come and buy 15 frozen meals because they’re going to the country for a week of skiing,” says Legendre. “We started out with tomato basil sauce offered at an attractive price point. The sauces are now so popular that we are actually selling to some of the big chains.”
CHEZ LATINA FAST FACTS NUMBER OF LOCATIONS
Two, plus a central kitchen for sauces and frozen meals NUMBER OF DAYS FOR DRY AGED BEEF
No less than 40
40
Path to success
NUMBER OF EMPLOYEES
Although they’ve mastered the art of becoming a true neighbourhood grocer (twice), Legendre and Chrétien know they still must compete against other independents and bigger chains, many only a car ride away. Legendre admits that constant innovation and improvement will continue to be the path to success for Chez Latina. “We’re always looking for the best suppliers, especially with meat,” says Legendre. “We also invest in and continually train our staff so that our team is up on the latest products and what’s coming up. With the food business, you have to be passionate.”
ICONIC PRODUCT
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Maple syrup tarts
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BRING ON THE
M A K E YO U R SALES SIZZLE THIS SUMMER!
DEPEND ON KRAFT HEINZ TO BRING EXCITEMENT IN-STORE AND BUILD CORNERSTONE SUMMER DISPLAYS! Gold Standard Display Maps to Ensure Strong In-Store Success profiling all priority brands More show stopping POS tools in 2017 to increase points of disruption in store!
Bunker Header
Pallet with Pallet Corner
Display Mock-up
CONTACT YOUR KRAFT HEINZ SALES REPRESENTATIVE FOR MORE INFORMATION
International
The INNOVATORS THE BEST OF INTERNATIONAL RETAIL DESIGN
2017
By Maureen Atkinson Senior partner, research insights, J.C. Williams Group
Grocery retailers around the world continue to be hotbeds of innovation by creatively responding to the many concerns that consumers have about their food. Consumers are demanding food that is healthy, more creative and does not harm the environment. They want to be able to customize their choices so that everything they buy is tailored to their needs. Oh yes… they also want to be able to shop in interesting and comfortable environments.
shops, pop-up stores, and new designs that are more appealing to this demanding customer. We are also seeing mash-ups of grocery and restaurants, termed “grocerants,” where retailers are providing enhanced eating areas that reflect fun local foods, or retailers that partner with restaurants to allow diners to buy specialized grocery selections that reflect the food being served.
Food retailers, large and small, have The Canadian grocery industry is responded with a new wave of highly competitive. Innovative innovation. Mass retailers like Lidl, retailers are the ones who will win. Migros and Carrefour are testing new concepts like in-store specialty
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International
Vita Mojo St. Paul’s, London, U.K. Key Trend: Interaction Why is it innovative? •
eal customization: Using either in-store M iPads or from the comfort of their homes, customers can design their meals precisely by selecting the portion size of each ingredient at set weight intervals.
•
ersonal nutritional advice: The restaurant’s P head nutritionist helps develop the menu and creates a dialogue around nutrition with customers. Eventually, users will be able to submit information on their physical attributes and dietary goals online in order to assess their progress.
•
I t’s entirely cash-free: Payment can be made online or through a contactless card.
Migros My Way Berne, Switzerland Key Trend: Smart Shopping Why is it innovative?
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•
C ustomization of fresh food and beverages: Its take-away format allows customers to create their own food and beverage experience.
•
F ast and easy shopping: There are two easy ways to order food and beverages – in the shop or online. When ordering online, shoppers can pick up their order in-store or have it delivered.
International
Eataly per Autogrill Modena, Italy Key Trend: Brand Intensity Why is it innovative?
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•
I ntegrated brand identity: It combines the basic style of Eataly with the typical offer of Autogrill service areas. The slogan “Eat better, travel better” welcomes travellers to the fast-food and retail section, where they find a Kimbo-branded cafeteria, a long-time partner of Autogrill.
•
O utstanding restau-retail: This allows customers to purchase food items eaten in the restaurant and recreate their food experience at home.
•
G reen-tailing: The concept is green-conscious. Photovoltaic panels in the parking lot provide shade for cars and energy for the service area, and the restrooms are equipped with waterless urinals.
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International
Carrefour Street Market Madrid, Alcobendas and Valencia, Spain Key Trend: Brand Intensity Why is it innovative?
WeFood Copenhagen, Denmark Key Trend: Responsibility Why is it innovative?
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•
Unique crowdfunding: Denmark’s first non-profit food-waste supermarket, WeFood is 100 per cent financed through crowdfunding.
•
Food donations: It collaborates with supermarkets and suppliers, receiving damaged goods supplied at no cost. Goods are sold at prices 30 to 50 per cent lower than in regular supermarkets.
•
Social supermarket: Its low-cost model allows the founder, DanChurchAid, to raise money for its work in developing countries.
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•
ot trend offering: With its Street Market at Carrefour H Alcobendas (Madrid), the hypermarket has opened its own gourmet market with a shop-in-shop model. It features cool industrial décor and access to some of the most innovative food propositions in Madrid.
•
op-up excitement: As a way to bring its products P closer to a new audience, Carrefour opened a pop-up store in Valencia in a centrally located design and cultural events centre.
•
xpress Premium: An upgraded model of the Carrefour E Express store chain, Express Premium is designed for high-income neighbourhoods, offering a broad range of gourmet, and wine and cheese products.
International
LIDL Montauban, France Key Trend: Brand Intensity Why is it innovative?
About J.C. Williams Group J.C. Williams Group is a full-service retail and marketing consulting firm. It offers clients practical, creative and in-depth knowledge of retailing and marketing, including up-to-date know-how and techniques to make retail operations better and more profitable. jcwg.com
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•
C oncept modernization: Lidl has redesigned its space to be more welcoming, with high ceilings and widened aisles.
•
A broader SKU offering: Greater product selection creates an impression of plenty.
•
P rivate-label rebranding: Lidl has invested heavily in its own brands, treating them as national brands with TV campaigns, new product lines and redesigned merchandising.
About Ebeltoft Group Ebeltoft Group is a global alliance of more than 20 consulting companies with a common high level of expertise and focus on retail. Since 1990, Ebeltoft Group has helped retailers, as well as suppliers to the retail sector, remain competitive by blending global retail expertise with each member’s local insight. ebeltoftgroup.com
About Retail Innovations 12th Edition Retail lnnovations 12 is Ebeltoft Group’s latest compilation of leading-edge retail innovation, highlighting individual ideas and the key themes that emerge from studying the whole. This year’s edition features four hot retail trends and 38 cases from various countries. To obtain a copy of this publication, visit jcwg.com.
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Can EDLP Strategy Succeed in Canada? By Bianca Piluso Director, Sales Effectiveness, The Nielsen Company
As consumers look to save money on their grocery expenditures, retailers are working to position themselves as the lowest-priced option in an effort to gain foot traffic. The pressure to reduce prices has never been greater; in many categories, we see promotions across competitors almost every week of the year. A retailer’s ability to add promotions, drive volume and gain share is extremely limited, not to mention the labour required to update these promotions on a weekly basis. Consequently, retailers across Canada are considering adopting an everyday low price (EDLP) strategy in an effort to set themselves apart from the competition. This is not the first time they have tried to do so, although previous attempts have resulted in lackluster performance. Why does the traditional EDLP strategy not work in Canada? For years, Canadian retailers have operated within a high–low strategy – high regular prices and frequent deep discounts to drive traffic and volume. Promotions were added when there was pressure to increase volume. These strategies have created an environment that leaves consumers less responsive to regular price changes, but more responsive to promotions than our American neighbours. Given this sensitivity to and frequency of promotions, EDLP strategies generally do not work in Canada. However, with the pressure to move to EDLP, there is an opportunity to make it succeed. While EDLP may not be a slam dunk today, it doesn’t mean Canadian consumers won’t shop differently in the future. Regardless of the product category, it is important to understand the goals and desired outcome with moving to an EDLP both for yourself and retail partners. It might take a multi-phased approach.
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STRATEGICALLY CHOOSE ITEMS Instead of a full category EDLP strategy, retailers and manufacturers should look to specific items that may be better suited to this strategy. Often, larger pack sizes are good candidates for EDLP, as consumers have already tested and believe in the product.
FOCUS ON PRODUCTS WITH LOW PROMOTIONAL FREQUENCY While hard to find, there are items with low promotional frequency. Providing they have high sensitivity to regular price changes, moving towards an EDLP strategy could work.
KNOW WHAT TO ASK FOR When faced with pressure from retailers to initiate an EDLP, manufacturers need to know what to ask for in return to make the move a win–win. It is critical to understand the frequency of flyer and display activity required, even with EDLP pricing, to ensure volume doesn’t plummet. Building the cost of these support items into trade budgets is vital to ensure margin and profitability objectives are achieved. Gaining preferential placement at shelf is another tactic that can improve sales outcome.
CREATE A HYBRID APPROACH Manufacturers could also create a hybrid EDLP by lowering the regular price, but still executing hot price points and supporting those with flyer and/or display activity. This can be challenging from a profit and trade-spend standpoint, so it’s critical to find the right balance between reduction in regular price and frequency of hot promotions.
Setting the Stage for EDLP Lower Regular Prices are Shifting the Growth Mix Within CPG
Sales % Change
DOLLARS TONNAGE
REGULAR PRICE
FEATURE PRICE
-0.1% +3.4%
+2.1% -0.6%
Source: Nielsen MarketTrack - Grocery+Drug+Mass, Total Tracked Sales including Fresh Random Weight - 24 weeks to January 7, 2017
GOODS SOLD ON PROMOTION = 41.2% (+0.5%) CPG Growth is Still Fueled by Inflation but Consumption is Growing 2012 DOLLAR TREND
2.5%
2013
2014
2015 3.4%
1.5%
2.0
%
2016 2.8 %
(GROWTH)
TONNAGE TREND (CONSUMPTION)
0.5%
-0.6%
-0.1%
0.5
%
1.7%
Source: Nielsen MarketTrack, Canada National All Channels - 52 weeks, Year End - Total Tracked Sales (UPC Only) January 7, 2017
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Open up our latest inventions! Get ready to discover bold, new creations that consumers can’t resist. This newest lineup will have tails wagging, cords pulling and chairs singing – all to deliver the latest innovations for memorable celebrations. It’s one more way Carlton Cards is working to make the world a more thoughtful and caring place. To learn more about these or any of our amazing card brands call 1-800-223-CARD
The emergence of Premium Greeting Cards in Canada Brad Van Laare, Director of Sales, Carlton Cards, shares insights about the premium card consumer and why they are so important to your store Who is the premium card consumer? There are actually two types of premium card consumers. The first is the specialty or aspirational premium consumer and with our Papyrus brand, we are successfully meeting her needs. She shops by brand and sees a card as an extension of her personal style. She places high value on fashion-forward aesthetics and is loyal to the Papyrus brand. The second is the core premium consumer. She seeks out cards for the most important people and moments in her life and is willing to pay a premium price for the perfect card. She places high importance on editorial, quality, and craftsmanship. She is attracted to and looks for special finishes and embellishments such as delicate attachments or complex laser die cuts.
27% Premium card purchases account for 27% of dollars in 2016
What’s your strategy to continue to address the needs of the Core Premium Consumer? As Canada’s #1 greeting card company, Carlton Cards is unmatched in our commitment to product leadership and innovation. We will continue to offer variety and expand our premium audience. By delivering uniqueness in each card, integrating sincere messages with beautiful design, our end goal is to make each card a work of art.
So what is new in the greeting card aisle? We are introducing Premier cards, a sub brand whose name indicates this is the best- of-the-best Carlton Cards has to offer. Premier cards will be distinguished by their fine artistry, superior craftsmanship and unique materials. Each card is packaged with a clear over-wrap, special envelope and metallic red rose sticker to signify quality. The core premium consumer will be able to find the perfect card integrated by caption and occasion every time she shops.
CANADIAN FEDERATION OF INDEPENDENT GROCERS MARCH 20-21, 2017, VANCOUVER, B.C. Michael Sharpe and Mark Ehleben, FMS Solutions
Dave Powell, Atlantic Grocery Distributors; and Rolster Taylor, CFIG Dave Pullar with the award-winning Spokes brand of snacks Cheryl Smith, Parmalat Canada; Kevin Smith, Grocery Business
Warren Park, Bill Rait, Scott Jarvis, Kim Krell, Jamie Cho, Karen Little, Tree of Life
Colleen Douglas, Sandy Mutiger, McCormick Canada
Paul Cope, Save-On-Foods
Busy at the Acosta booth Jason Lemoine, Bevin Wong, and Ken White, Freybe Gourmet Foods Ltd.
Maple Leaf Foods receiving Best Large Booth award
Angela Cove and Tony Marr, Parmalat Canada Inc.
Bruce Davis, AWP Store Fixtures; Alain Charbonneau, Glen Bailey, Etalex
Ian Mills, Lianne Laurin, Rob Ringwald, Mondelez
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Christine Kemp and Charlene Boychuk, Burnbrae Farms Limited
Bob and Sue Adams, Pemberton Valley Supermarket
Alex Iasinskyi, Choices Markets Roberto Alomar and Cori Bonina, Stong’s Market
Rory Howell, Howell Data Systems
Spero Moukas, PECO Pallet Canada, Inc.
Roberto Alomar with Karen Rossit, Kraft Heinz
Mike Dziadyk and Ken Schley, Quality Foods Nancy Azzara, Doris Keller and Louisa Primerano, Bosa Foods
Steve Turner and friends, Kruger Inc.
Ross Bletsoe takes a selfie with Roberto Alomar
Steve Fox, Nestlé
Ryan Blunden, Dom Hetti and Carson Bonina, Stong’s Market
Stephen Kouri, Smuckers; Joe Weber, Saputo
Ward Hanlon, Andrea Almarza, CFIG; and Jamie Nelson, Overwaitea Food Group
Sarah Pelland and Kelly Greville, Bothwell Cheese
Shannon Forner, Valu-Plus Foods
Stu Spear, Don Watson and Dwight Murton with Shelf Buddy, one of the 10 most innovative products
Stephen Peers, Pinnacle Foods Canada Corp.; Brenda Kirk and Blende Scott, Save-On-Foods
Shawn Gavigan, Freson Bros.
Tom Szostok, Matthew Kern, Kim Hanbidge, David Soh, Campbell’s Soup Tammy Gomes, Prairie Naturals
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Tony Morello and Andy Mollica, Aurora Importing and Distributing Ltd., sampling fresh Baci chocolates
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LIST IT
NEW & NOW DISCOVERIES
Fresher For Longer Lettuces Mann Packing has introduced a line of convenient, readyto-use leafy lettuces to the Canadian market. The products are verified GMO- and preservative-free. The product stays fresher longer, thanks to the atmospheric tray, which allows for a 16- to 18-day shelf life. veggiesmadeeasy.com
Naturally Delicious Introducing SPOKES—a Canadian-made, air-puffed potato snack that is not fried in oil and is crafted with a handful of simple ingredients. Available in nine trending flavours, these tasty potato snacks contain only 40 calories per cup. spokes.ca
Better For You Snacking Options Snyder’s-Lance, Inc. introduces innovative new better-for-you additions to three of its popular snack lines: Kettle Brand Potato Chips cooked in 100 per cent avocado oil; Snack Factory non-GMO verified Pretzel Crisps; and four new varieties of Snyder’s of Hanover Gluten Free Pretzels. Contact your local Tree of Life Canada representative for more information. treeoflife.ca 62
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Organically Delicious Goldfish Baked Snack Crackers has launched a new Cheddar variety made with 70 per cent organic ingredients. Made with real cheese, the crackers contain no artificial flavours, colours or trans fats, and are low in saturated fat. campbellsoup.ca/en-ca/products/goldfish
Authentic Calabrian Chili Sauce
Grain Free Gourmet Dog Treats Foley’s VitalityDog Grain Free Gourmet Dog Treats are made and sourced in Canada using only antibiotic- and hormonefree meats as well as antioxidant fruits and vegetables. These grain-free, gluten-free treats are hand-cut and contain no added salt, fat, sugar or preservatives.
Imported from Italy with a combination of 100 per cent natural ingredients and over a century of the Celli family’s skillful workmanship, Tutto Calabria’s Authentic Calabrian Chili Sauce has an authentic taste and versatility across a variety of dishes. auroraimporting.com
cbpowell.com
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it figures
Holistically Healthy Consumers
75
%
of consumers prefer to cook at home in order to control what’s in their meals
Canadians are taking charge of their health and are more food savvy than ever. Takeaway
64
%
find it challenging to eat right There’s an opportunity for manufacturers and retailers to provide consumers with healthy meal solutions to help them crack the code of healthy eating. Takeaway
80
CANADIANS SPEND % OF LESS THAN 15 MINUTES ON BREAKFAST
Innovation around health and wellness in breakfast items is a key motivator for consumers because convenience is key. Takeaway
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41
%
of Canadians say eco-friendly products are important to them
28
%
think they may not be as effective
Carman Allison is Vice-President of Consumer Insights for Nielsen in Canada, and is responsible for creating thought leadership insights for CPG manufacturers and retailers. A L L S TAT S C O U RT E S Y: N I E L S E N
Emphasize the benefits of green products by putting a “guaranteed strong” tag on your packaging. Takeaway
TOP 3 NATURAL HABA CATEGORIES THAT CONSUMERS ARE WILLING TO PURCHASE:
51%
51%
BODY CARE
52
FACIAL CARE
49% HAIR CARE
%
of Canadians say crueltyfree personal care products are important to them
Socially responsible consumers are researching online to find cruelty-free options. Direct them in-store with clear signage or a dedicated shelf. Takeaway
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plan to attend! TM
the path to retail excellence.
2017
conference: september 14 & 15 trade show: september 16 & 17 metro toronto convention centre, south building
start your visit at the product showcases
there is no limit to samples you take home
take advantage of show discounts
An event dedicated to retailers who sell natural health, organic and specialty food products. Visit chfa.ca for complete details.
get to know the people behind the products
be a part of something great!
nothing compares to being here
Retailers attend for FREE as guests of Grocery Business when you register using code E17M56* *This code is valid for on-line registration until September 1, 2017.
Look for the real thing. italianmade.com